In a significant move, Securitize, backed by BlackRock, and Computershare are poised to bring a substantial portion of the $70 trillion US stock market onto blockchain through tokenized equities. This development marks a crucial step in integrating traditional Wall Street infrastructure with blockchain technology. The collaboration allows listed companies to introduce tokenized equity, known as Issuer-Sponsored Tokens (ISTs), alongside traditional shares, providing investors with the flexibility to hold stocks through either conventional systems or digital wallets.
This initiative is part of a broader effort to make tokenized shares compatible with existing market regulations while introducing new asset management and transfer methods. By integrating with transfer agents like Computershare, which maintain shareholder records and handle corporate actions, the companies aim to bypass common cryptocurrency workarounds that involve tokens representing claims on shares rather than the shares themselves. Securitize, a blockchain-based firm, specializes in issuing and managing real-world assets like equities and funds in tokenized form on blockchain networks. The company has made headlines for issuing BlackRock's $2.5 billion tokenized money market fund and collaborating with the New York Stock Exchange on its tokenized equity platform.
It plans to go public later this year through a SPAC deal with Cantor Equity Partners II (CEPT). Under this new setup, Computershare will serve as the transfer agent for tokenized shares, mirroring its role for traditional shares, including managing records and processing events such as dividends or stock splits across both formats.
Securitize provides the underlying technology, with the blockchain component operating primarily in the background. The tokens are designed to represent direct ownership, eliminating the need for derivative tokens layered on top of existing stocks. According to Securitize CEO Carlos Domingo, 'ISTs do not rely on derivative tokens that sit on top of underlying shares.
They provide US issuers with the ability to create direct equity ownership in token form.' With Computershare serving over 25,000 companies and acting as a transfer agent for approximately 58% of the S&P 500, this partnership has the potential to achieve significant scale. The structure also ensures that issuers maintain control over their shareholder base, a critical requirement for public companies. As Ann Bowering, CEO of issuer services at Computershare North America, noted, 'Our focus has been to empower US-listed companies to issue tokenized equity while retaining control.'